Topic: Charging order on house

[dodgecity]

Hello,
 
Could anyone please let me know if I proceed with bankruptcy, will the charging order on the house be accounted for in the bankruptcy or will they still remain in place once the bankruptcy has been finalised and/or I have been rehabilitated?
 
I currently have 2 Charging orders on the house but the mortgate is in negative equity so I doubt the OR will force a sale.
 
Any assistance would be greatly appreciated. Thanks.

[AshleyPark]

Hi Dodgecity,
 
More than likely a restriction will be placed on the property. When or if the markets improve then this will be taken out of any sale or remortgage.
 
Lee

[Steven Jackson]

Hello Dodgecity
 
To answer your question, if you declare bankruptcy, the two charging orders on your house will remain. The debts they are associated with will not be written off by the bankruptcy.
 
If your house is currently in negative equity, then if you declare bankruptcy and you want to keep the property, you should approach the OR immediately to buy back the beneficial interest. If you do not, then the OR has the right to hold onto the title of the house for up to three years to see if it gains value and becomes worth selling (even if you are still living in it and paying the mortgage during this time).
 
If you do buy back the property at the beginning, you will probably be able to do this for £1 plus solcitors costs of c£200. You will obviously then continue to be responsible for payment of the mortgage and the debts which have charging orders. You should try to make provision to pay these as statutory interest will be added at 8% per year until they are paid if and when you do eventually sell the house.